ULUSLARARASI KAMU HUKUKU II

In 1919, a very important development concerning international economic law was the establishment of the International Labor Organization (ILO).

The institutions of the new order, and the treaties founding them and establishing many basic principles, were more reflective of liberal economic understanding.

Until the end of the First World War, the principle that dominated international economic relations, particularly in the context of international trade, was the “freedom of trade”. Although it had exceptions, the principle reflected the impact of the British trade understanding.

The “Great Depression’ of the 1920s was another factor that weakened international trade.

The IMF was established officially in December 1945, when 29 countries ratified the treaty on the basis of decisions taken at Bretton Woods.

The main objectives of this institution are to increase international monetary cooperation, to maintain financial stability, to support the increase of international trade, to increase employment, to support development and to reduce poverty in the
world.

The International Bank for Reconstruction and Development, or commonly known as the World Bank, was founded in 1944 by the decisions taken at Bretton Woods.

The World Trade Organization was established in 1994.

ICSID is one of the five organizations of the World Bank Group, along with the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), and
the Multilateral Investment Guarantee Agency (MIGA).

The International Centre for Settlement of Investment Disputes (ICSID), established by the Convention for this purpose, was formally established on the date of entry into force of the Convention.

The International Union of Customs Tariffs was established in 1890. Today, this union continues as International Customs Tariffs Office.

Georg Schwarzenberger, a lawyer who could be considered as the founding father of international economic law, began writing and publishing intense and detailed ideas in the 1940s. In an article published in 1966, he even stated that the fields of international labor law, international social law, international transportation law, international copyright and industrial design rights law could be kept separate in international economic law.

The designs at Bretton Woods envisaged the establishment of a new “monetary payment system”; in other words, a system of payments among States around the world. The basis of this monetary system was an external payments system indexed to the US Dollar. According to this system, the value of the countries’ currencies would be expressed in US Dollars. Thus, the US Dollar was an accepted unit of value or price in international trade.

The IMF was established officially in December 1945, when 29 countries ratified the treaty on the basis of decisions taken at Bretton Woods. It actually started working on 1 March 1947.

Countries’ vote weight and withdrawal rates are determined according to their quota. Countries such as the USA, Japan, England, and France, which have high quotas, have a great impact on the IMF policies.

Serious criticism of the IMF-centered international economic system is also expressed. Critics suggest that the IMF supports make the countries more dependent on IMF support rather than eliminating the economic problems of developing countries, creating debt spirals that cannot be extracted, and that the support plans do not take into account the peculiar circumstances of the countries.

International Finance Corporation: Founded in 1956. It is the largest development institution focused on the private sector. It provides financial support to the private sector and provides consultancy services to the private sector and governments.

The second principle is that the “diplomatic protection” granted to States by international law also applies to foreign direct investors. On behalf of a person or company whose rights are allegedly infringed, the State of which they are a national may take legal and/or political initiatives based on the principle of diplomatic protection. Therefore, individuals and companies are able to continue to benefit from the protection of their own State to a certain extent in their activities abroad.

Another principle of international development is the principle of preferential treatment in favor of developing countries. This principle, which actually means discrimination in favor of developing countries in economic relations, aims to eliminate existing injustices, as article 19 of the Charter of Economic Rights and Duties of States stipulates.

The Security Council decided sanctions against the Libyan administration in the 1980s and 1990s, Iraq in 1990, members of the military junta administration in Haiti from 1993- 94, UNITA in 2000s and Iran due to its nuclear program. In addition to the UN Security Council resolutions, the US and the European Union have also taken and implemented sanctions against Iran, mostly after 2011.